Boat Purchase Outside EU

[Guest]

Hi there,

I am looking to buy a steel boat for a three year circumnavigation. The best prices for this kind of boat seem to be had in the US. Since my plan is to circumnavigate I don't really care which side of the pond I buy the boat, so purchase in the US seems sensible. However, any boat I buy will not be small craft directive compliant or VAT paid. I would like to sell the boat in the UK when I return and need to know what imact this will have. I have realised that I need to change my country of residence before I purchase the boat so that I can bring it back to the UK without paying VAT, that way the VAT only has to be paid wehn I sell it. But will I be able to sell it in the EU at all? Can I sell a boat in the EU which does not comply with the small craft directive? Can I register a non compliant boat on the british registry? I have read the RYA documentation regarding this but am still unclear.

Many thanks to anyone who can shed some light on this confusing subject.

Will

 

[AndrewB]

You are correct that you will need to be non-EU resident to sail this yacht within the EU. I assume you know about establishing non-resident status. As a non-resident you can apply for temporary importation relief to bring the yacht into the EU (for a maximum 18 months - not exceeding 6 months in some member states). Technically you have to be 'established' outside the EU for this - it would be worth checking with Customs what this requires in addition to non-residence. UK Customs are more relaxed about visits not exceeding 3 months.

In general you could not sell the yacht within the EU without both paying VAT and import duty, and having the yacht CE-marked (i.e. satisfying the RCD). The latter is not normally economical. However, if the yacht you purchased was originally built in the EU, or had been kept in the EU at any time prior to June 1998 (including Guadaloupe, Martinique), then it would be exempt from this. You need evidence such as mooring receipts.

I'm not sure of the rules on UK registration for a non-resident UK national. You cannot apply for SSR registration, but if the yacht is properly documented to prove title and measured as required, you should be able to obtain Part 1 registration even if the yacht never visits the UK. VAT/RCD is irrelevant. This may involve 'company' registration which costs a little but probably worth it to avoid the taxes with registration elsewhere (some other countries only permit nationals to register). I suspect from the number of yachts that do so, that it is advantageous to register in the Channel Isles.

 

[davidhand]

If you are a Brit living outside the country for a minimum of twelve months you may bring back your personel belongings (without paying VAT) including a boat provided you have owned the boat for at least six months prior to returning and don't sell it within twelve months of returning.
As far as complying with the small craft directive is concerned that is far more difficult as I see it because you have to submitt drawings and design specs as well as having the boat physically inspected.
You can register your boat with the small ships, in Cardiff I believe, but you have to be a UK resident to do this. Full documentation the boat has to be inspected/surveyed not feasible if the boat is out of the country.
I don't see how you can claim to be out of the country for tax purposes but in the country in order to register your boat, unless of course the two governments don't communicate.
I believe you can register your boat by creating a corporation but I have not checked into that.
Another problem you may run into is if you plan to buy a boat in the US is that it is illegal for a non US citizen to either own or skipper a US documented vessel. This would mean you would have to register the boat at the state level, not I am told advisable for international travel.
HM Customs has a booklet available from Haymarket House, 28 Haymarket, London SW1Y 4SP.
By the way I am a Brit/US dual national living in California.